It is known in the prior art to provide payment information to a biller so that recurring payments can be billed with minimal or no effort required by the consumer. For example, many individuals set up automatic payment for their Internet service, their pay Web sites, and the like, by providing their credit card information to the biller. The biller is then authorized to submit transactions against that credit account for each new bill that comes due. Other prior art autopayment systems allow for the consumer to provide checking account information so that their house payment or car payment can be billed against their checking account each month. In some instances, direct deposit accounts (DDAs) like checking accounts used for autopayment may also have overdraft protection to ensure the account is not overdrawn.
Such autopayment solutions have cut expenses for billers and reduced the amount of time consumers spend doing their bills each month. However, such solutions still have a number of drawbacks. One drawback of typical autopayment systems is that if the account provided by the consumer is overdrawn or over a limit, funds will not be available to satisfy the payment due. As a result, the biller will suffer increased costs in writing, calling, or otherwise contacting the consumer in attempting to secure payment. Also, in such a scenario the biller moves from a substantially automated payment collection approach to a non-automated payment approach. The consumer suffers because, as a result of nonpayment, he/she has a deteriorated relationship with the biller that may result in loss of service, reports to a credit agency, and so forth. The consumer may also suffer direct charges against the payment account as a penalty for attempting to overdraw the account or exceeding a credit limit. These are significant problems in the prior art that impose costs and inconvenience on billers and consumers.
Another drawback of typical autopayment solutions is that they offer limited or no flexibility to the consumers. Because they are typically offered with fixed terms and with a fixed structure, they are not adapted to meet each consumer's particular needs. This is a significant disadvantage to consumers, who will either select a product that is not ideal for their needs or decide to forego the autopayment product entirely. These disadvantages flow to the payees/payment administrators as well.
Other problems and drawbacks also exist.